Marine Feed Mixed With Vegetable Protein Attracts Higher Customs Duty: CESTAT Chennai

On 22 January, the Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that imports of marine feed mixed with vegetable protein attract higher customs duty as they are classifiable as formulated animal feed and not as simple fish or mollusc meal. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao upheld the reclassification of imported squid-based feed products under Customs Tariff Heading (CTH) 2309 as preparations for...

Raw Aluminium Cannot Be Reclassified As 'Motor Vehicle Parts' Based On End Use Alone: CESTAT Delhi

The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) recently set aside the re-classification of raw aluminium articles imported from Korea and Thailand as auto-parts solely on the basis of end use. On 21 January 2026, a Bench of Justice Dilip Gupta and Technical Member Hemambika R. Priya rejected the Department's attempt to classify imported aluminium tubes, pipes, and profiles as 'parts of motor vehicles'. The Tribunal held that merely because the imported...

Johnson Lifts Secures ₹1.24 Crore Relief As CESTAT Chennai Upholds Elevator Parts Classification

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that lift and elevator parts imported by Johnson Lifts Pvt. Ltd. were correctly classifiable as “parts suitable for use solely or principally with lifts and escalators” under Customs Tariff Heading (CTH) 8431, which attracts a lower rate of customs duty. A Bench comprising Judicial Member Ajayan T.V. and Technical Member Ajit Kumar set aside the department's differential customs duty demand exceeding...

CESTAT Restores Custom Broker's Licence After Finding Revocation Based On Statements Not Admitted As Evidence

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has set aside the revocation of a customs broker licence granted to Global Links. The tribunal held that, on the facts of the case, the action could not be sustained, as it was based only on statements that were never admitted as evidence. A coram comprising President Justice Dilip Gupta and Technical Member P. V. Subba Rao found that the adjudicating authority relied on statements recorded during the investigation...

No Countervailing Duty On Silk Fabrics Imported In 2012–13: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) clarified that countervailing duty (CVD) cannot be levied on imported silk fabrics during 2012–2013, when excise duty on such fabrics was fully exempt under the relevant notification. Further that customs proceedings are deemed concluded once duty and interest are paid before a show-cause notice is issued. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao set aside the...

Parts Used For Intelligent Manual Transmission Not Clutch Parts, CESTAT Rules In Hyundai Transys' Favour

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that auto parts imported by Hyundai Transys India Private Limited for use in intelligent manual transmission vehicles were wrongly classified by customs authorities, leading to unsustainable duty demands. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao ruled that the actuator assembly and tube connector assembly used in iMT vehicles cannot be treated as “clutches and parts...

CESTAT Mumbai Sets Aside Service Tax Demand Based Only On Service Tax–Income Tax Return Mismatch

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal has set aside a service tax demand that was raised on the basis of a mismatch between income tax returns and ST-3 returns (half-yearly service tax returns filed under the pre-GST regime). The tribunal noted that the demand was confirmed without proper service of notice and without giving the taxpayer an opportunity of hearing The appeal was decided by Technical Member M.M. Parthiban. The tribunal found that the...

Chilly Seeds Imported For Sowing Cannot Be Classified As 'Spices': CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has held that chilly seeds imported exclusively for sowing cannot be treated as “spices” under the Customs Tariff and must instead be classified as seeds used for sowing under Chapter 12. A coram led by President Justice Dilip Gupta and Technical Member Hemambika R. Priya set aside a 2016 order of the Commissioner (Appeals) that had upheld a higher duty on such imports. For context, spices attract a 70% basic...

CESTAT Delhi Allows Importer To Claim Tax-Free Imports From Least Developed Countries Despite Licence Terms

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Customs authorities cannot deny duty-free benefits available to imports from Least Developed Countries merely because an import licence issued by the Directorate General of Foreign Trade refers to a separate concessional duty notification. A coram of President Justice Dilip Gupta and Technical Member P.V. Subba Rao set aside a customs duty demand, along with interest, penalty, and redemption fine,...

CESTAT Mumbai Reiterates 10% Customs Duty Benefit On Enterprise Ethernet Switches

Reiterating that customs authorities cannot deny a concessional duty without objective evidence, the Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal has allowed Digisol Systems' appeal and extended the benefit of 10% customs duty on imported enterprise Ethernet switches and transceivers.A bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Prathiban was hearing an appeal filed by Digisol Systems, a provider of IT networking solutions and consultancy...

Belated Detection Of Importer's Misuse Of Duty-Free Imports Cannot Be Attributed To Customs Broker: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the revocation of the Customs Broker licence of Aggressive Shipping & Logistics Pvt. Ltd. It held that diversion or misuse of duty-free imports by an importer, detected later by the Directorate of Revenue Intelligence (DRI), cannot automatically be attributed to the Customs Broker. A coram of Judicial Member S K Mohanty and Technical Member M.M. Parthiban was hearing an appeal against an order of the...

Customs | Goods Cannot Be Confiscated Solely On Local Market Survey/Opinion Without Proof Of Smuggling: CESTAT Allahabad

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that goods cannot be confiscated merely on the basis of a local market survey or opinion in the absence of proof of smuggling. The Tribunal observed that the burden to prove that the goods are smuggled lies on the department.P.K. Choudhary (Judicial Member) stated that the Department has not discharged its burden. Since betel nuts are also produced in India. In the absence of any evidence that confiscated...